By Giles Coghlan, Chief Currency Analyst at HYCM
The case for further CAD downside
Canada has a strong export oil market, so the fate of the CAD is tied up with the movements in oil. With OPEC discussions breaking down and Saudi Arabia planning to boost its oil production in April to capacity this has led to heavy pressure in the crude market.
CADJPY in the 90's
The CADJPY pair going back to the 1990's has been down as low as 58. This was when spot oil was around the $20 point. It is circled in red on the chart below.
So, all of this makes sense for further CADJPY downside. Selling at market, or pullbacks make sense and a target of 71.50 in the near term.